What is the case about?
The dispute is related to a loan given by Bank of India to Firestar Diamond FZE, a Dubai-based company linked to Nirav Modi. The bank argued that Modi had personally guaranteed the loan and was therefore responsible for repaying the outstanding amount.
In the UK courts, Modi contested the assertion. He personally challenged the case in front of the London court earlier this year.
Nonetheless, the High Court decided in Bank of India's favor, concluding that the bank's claim was legitimate and enforceable. The decision permits the bank to pursue with recovery through UK legal processes.
This decision adds to a series of legal setbacks for Nirav Modi in Britain.
In March 2026, the London High Court rejected his attempt to reopen proceedings related to his extradition to India. The decision supported earlier rulings that approved his extradition.
Modi has been in custody in the UK since his arrest in London in March 2019. British courts have rejected several of his bail applications over the years.
Nirav Modi PNB Fraud Case
The Nirav Modi–PNB fraud case is one of the biggest banking scams in India. The fraud came to light in 2018 when Punjab National Bank (PNB) found that businessman Nirav Modi and his companies had obtained loans from overseas banks using fake Letters of Undertaking (LoUs).
Some bank employees assisted in issuing these letters of intent without adhering to the correct protocols or entering the transactions into the bank's database. Banks lost almost ₹13,000 crore as a result. Numerous residences and assets connected to Nirav Modi and Mehul Choksi were seized once the scam was discovered, prompting investigations by the CBI and Enforcement Directorate.
Nirav Modi was arrested in the UK in 2019 after leaving India before the fraud was discovered. India is still working to extradite him and bring him back. Stricter regulations on foreign trade financing transactions were among the significant banking sector improvements brought about by the case.
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